In the first week after the Spring Festival, a quick overview of the LED industry chain dynamics

This week, the LED industry chain ushered in the first working week after the Spring Festival. Many domestic and foreign companies released news, including the approval of TCL Huaxing's acquisition of the equity of Zhaoyuan Optoelectronics, AUO's deployment of Micro LED optical communications, the price reduction of Garmin Micro LED watches, and the listing of Tongbao Optoelectronics on the Beijing Stock Exchange. In addition, Jinko, Han's, Songsheng, San'an and other companies have made new moves, and project construction, product and technology updates have been promoted simultaneously.

[Selected Events]

TCL CSOT's acquisition of Zhaoyuan Optoelectronics' equity was approved

On February 26, the State Administration for Market Regulation unconditionally approved TCL CSOT's acquisition of 80% equity in Fujian Zhaoyuan Optoelectronics Co., Ltd., with a transaction amount of 490 million yuan. After the transaction is completed, Zhaoyuan Optoelectronics will become a subsidiary of TCL CSOT. The acquisition aims to strengthen LED chip design and manufacturing capabilities and promote vertical integration from chips to display modules.

AUO uses Micro LED combined with glass substrate technology to expand into the optical communications market

Recently, AU Optronics plans to apply Micro LED and glass substrate process technology to the silicon photonics CPO short-distance optical communication market, targeting inter-cabinet transmission in AI data centers. The company has technical advantages such as packaging process, RDL and TGV. It has completed sample development and discussed commercialization directions with customers. It has also joined the Silicon Photonics Alliance to participate in the formulation of industry standards.

Garmin reduces the price of its Micro LED watch Fenix 8 Pro by 15%

On February 23, Garmin announced that it would lower the price of its flagship outdoor smartwatch Fenix 8 Pro Micro LED version from US$1999.99 to US$1699.99, a decrease of approximately 15%. The price of the AMOLED model remains unchanged. This price adjustment is mainly targeted at the North American market and may be related to the release of the new Fenix 9 Horizon series and the market product replacement cycle.

[Capital Trends]

Automotive LED company Tongbao Optoelectronics is listed on the Beijing Stock Exchange

On February 16, Changzhou Tongbao Optoelectronics was listed on the Beijing Stock Exchange. It specializes in automotive LED modules and LED lights, and its products cover many mainstream vehicle manufacturers. The company's revenue will continue to grow from 2022 to 2024, reaching revenue of 717 million yuan in 2025. This IPO plans to raise 330 million yuan for the construction of new energy vehicle intelligent LED modules and charging and distribution system projects.

Jinko Electronics plans to invest 268 million yuan to participate in the Semiconductor Industry Fund

On February 24, Jinko Electronics announced that it plans to invest 268 million yuan to participate in the establishment of the Guangzhou Tianze Jingxin Venture Capital Fund with a total scale of 668 million yuan, accounting for approximately 40% of the fund. The fund focuses on the semiconductor and integrated circuit fields in Guangzhou's "12218" industrial system, giving priority to supporting government strategic projects, including Guangdong Core Energy Semiconductor.

Han’s Laser plans to invest US$150 million to establish overseas operations centers in Southeast Asia

On February 24, Han’s Laser announced plans to invest US$150 million to establish an overseas operations center in Southeast Asia, with construction expected to be completed within 36 months. The center will be operated by the company or a subsidiary and aims to get closer to the international market, optimize resource allocation, enhance overseas service capabilities, and seize the growth opportunities brought by the upgrading of Southeast Asia's manufacturing industry.

Songsheng Co., Ltd. plans to set up a joint venture to develop the server and AI power supply business

On February 25, Songsheng Co., Ltd. announced that it plans to jointly invest in the establishment of a joint venture with Xi'an Yimai Tongchuang and Xi'an Yimai Power Technology Co., Ltd. with a registered capital of 30 million yuan, of which Songsheng will invest 15.3 million yuan and hold 51% of the shares. The new company will focus on the R&D, production and sales of server power supplies and AI power supply products, and will be included in the company's consolidated statements.

Two AR glasses companies received nearly 700 million yuan in financing

Financing for AR glasses companies is accelerating again. Recently, Beijing Tribute Unknown Technology Co., Ltd. completed a Pre-A round of financing of over 100 million yuan, deploying Micro OLED+ free-form surface optical solutions; VITURE completed a financing of 100 million US dollars to increase its focus on the consumer XR market. Both companies focus on AR/XR terminal products, showing that the capital market continues to be optimistic about the near-eye display track.

Sanan Optoelectronics plans to dispose of some equipment

On February 24, Sanan Optoelectronics announced that it planned to dispose of some equipment that did not meet business needs, with an original book value of 866 million yuan and a net value of 447 million yuan, accounting for less than 2% of the company's net fixed assets. The company stated that this move is aimed at optimizing product structure and improving production efficiency, and is not expected to have a major adverse impact on normal operations.

【Project Progress】

LED projects in Jiangxi and Guizhou accelerate production capacity construction

Recently, LED industry projects in Jiangxi and Guizhou have accelerated production capacity construction: the second phase expansion of Jiangxi Xiangyi New Materials Mini LED industry chain project has been launched, focusing on the high-end display market; the LED industrial park production line of Guizhou Yuhui Electronic Industry Investment Co., Ltd. maintains full operation at full capacity.

Anlin Electronics acquired 11.2 acres of land and planned to invest 100 million yuan to expand the production of smart LED devices

On February 24, Guangdong Anlin Electronic Technology Co., Ltd. acquired 11.2 acres of industrial land in Danzao, Foshan, and planned to invest 100 million yuan to build an investment and expansion project for smart LED display semiconductor devices, including a new manufacturing workshop and R&D center. The contract signing of the project has been completed before, and this land acquisition marks that the construction has entered the substantial advancement stage.

With a total investment of 3 billion yuan, Ruixian Technology’s Micro OLED project started construction

On February 25, Changsha Ruixian Technology’s 3 billion yuan silicon-based OLED micro display industrial park project started construction in Jinxia Economic Development Zone, covering an area of about 55 acres and planning an “8-inch + 12-inch” production line layout for the near-eye display market such as AR/VR/XR.

【Products and Technology】

ByteDance's new Micro OLED VR product may be released next month

According to reports, Pico will display its flagship XR headset "Project Swan" at GDC next month, equipped with the new PICO OS 6 system and supporting multi-modal interactions such as gesture recognition and eye tracking. The device weighs about 100 grams, uses a wired hybrid architecture to improve performance and wearing comfort, and is equipped with a self-developed chip and a customized Micro OLED display with a pixel density of close to 4000?PPI.

35,000cd/m2, Germany develops ultra-high brightness red Micro OLED

Recently, Germany’s Fraunhofer Institute for Photonic Microsystems announced that it has successfully developed a new type of red Micro OLED microdisplay that combines ultra-high brightness and high efficiency. It is reported that the first batch of innovative results of this technology will be officially unveiled at the SID European Mid-term Conference in Lisbon, Portugal.

Floor-standing LED cinemas in Guangdong and Guangxi

Recently, Chaozhou, Guangdong and Liuzhou, Guangxi respectively welcomed LED movie screen theaters into use. Chaozhou SFC Shangying International Cinema uses a curved LED screen, supports 4K HDR and sound-transparent design to achieve audio and video synchronization; Liuzhou SKY Sky Cinema uses CINITY LED system, with 4K, 3D, high frame rate and wide color gamut functions.

[Latest performance]

This week, Absen, AMEC, Jingfeng Mingyuan, Mingwei Electronics, Xinyuan Micro, Jingzhida, Yuanfang Information, Delonghi Laser, Xinyichang, BiEMicro, Haimuxing, Longtu Mask and Greer have successively released 2025 annual performance reports.

In overseas markets, Freya Hella announced its preliminary results for fiscal year 2025, with annual sales of approximately 8 billion euros, operating profit of 474 million euros, and profit margin rising to 6.0%. Among them, the electronics business grew by 4.5% year-on-year and became the main growth driver; the lighting business declined due to project suspensions and weak demand. The company expects sales in 2026 to be between 7.4 billion and 7.9 billion euros.

At the same time, Aixtron announced its 2025 results, with annual revenue of 556.6 million euros, a year-on-year decrease of 12%, EBIT of 100.3 million euros, and a profit margin of 18%. The optoelectronics business has picked up significantly, driven by the demand for AI data centers, but power electronics is still the main source of revenue. Micro LED business accounts for 15%, and the market is still in the cyclical adjustment stage. The company expects revenue in 2026 to be approximately 520 million euros.